Insurance Commissioner Tim Temple says property insurance reforms in Louisiana are working. Temple says since the legislature passed his package of property insurance reform bills last year, rates are starting to trend in the right direction.
“We’ve had insurance companies file for rate decreases for 2025, and that is largely attributed to the reform, as well as just the overall reinsurance market,” Temple said.
In addition to the 10 new homeowner insurer companies since the 2024 session began, the Louisiana insurance market is improving in terms of both the cost and frequency of rate filings from property insurance companies.
Rate increases trended significantly downward in 2024
- In the Homeowners line, the statewide average market impact for approved rate changes for 2024 was +6.6%. This is a sharp decrease compared to 2023, which was +14%, and 2022, which was +16.2%.
- In the Commercial Multi-Peril line, the statewide average market impact for approved rate changes for 2024 was +3%. This is a significant decrease compared to 2023, which was +6.7%, and 2022, which was +3.9%.
- In Fire and Allied Lines, the statewide average market impact for approved rate changes for 2024 was +1.8%. This is a sharp decrease compared to 2023, which was +5.8%, and 2022, which was +9.3%.
More filings for rate reductions and fewer filings for rate increases in 2024
- In the Homeowners line, there were 50 requested rate increases in 2024, down significantly from 80 in 2023 and 75 in 2022.
- In the Commercial Multi-Peril line, there were 29 requested rate increases in 2024, down significantly from 42 in 2023 and 34 in 2022.
- In Fire and Allied Lines, there were 29 requested rate increases in 2024, down significantly from 51 in 2023 and 41 in 2022.
- In the first two months of 2025, we have approved 7 rate decreases from Residential insurers, all between a 4% and 11% decrease. That is more than we approved in the entire calendar years of 2024 (5 rate decreases), 2023 (6), and 2022 (1).
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